Reflection in business is a key strategic tool to help you understand what has happened, how that happened, what you want to learn and how that impacts the way forward. Although micro business life might feel like a constant forward motion in a blur, taking sme time to do some 'active reflecting' in your business, and regularly, will help you stay on the the path you love, course correct and continue to move forward in the right direction for you.
At the time of writing, it's less than 6 weeks before Christmas. Personally I feel that this is a great time to reflect. You have much of the year behind you to work through and you're on the verge of a brand new year. However, doing this exercise every 3 months would also be a great idea.
So what are some good ways to actively reflect in your business i.e. look at the things that really matter for your overall definition of success.
Metrics matter. You have to have data to help back up what you 'feel' is happening in your business, otherwise it is just that - a feeling or assumption. Assumption can be a dangerous road to walk because we can assume that business is slow because the news said it was the economy or our network said it was the same for them. This is not reflecting well. We need to understand the facts for our business. You get to choose these based on your goals but here are some ideas of good metrics to check in on:
Bottom line sales figures. Goes without saying but comparing them against your goal or last year unloacks new meaning. Notice patterns too, to see if there are further ways of unlocking potential.
Website visits (& actions!) could be an important metric if your business plan is all about leading folk there to buy, engage or sign up. Are they actually doing that? Is there a page on the website where they disappear before taking that right action?
Email sign ups - often a key strategy for a small business as they try to find ways around the uncertain world of the algorithm. Are your lead magnets working? Do people stay active on the list. Does the list convert to sales even?
Types of customer interaction. Are your customers regular or always new? Do you have lots of one off customers who don't return or perhaps only the same pool of customers without accessing new ones? Understanding this breakdown is a game changer for future development.
What's the story? I love this as a way of reflecting in business. Imagine you started the year or the last quarter with a goal or target. Perhaps something like, I want to launch that product or gain 3 more clients or be selected for that exhibition etc etc. Referring back to those, how did it go? How far have you deveated from those goals or that trajectory? Are you still running the business you actually wanted to? Understand the story about what really happened. For example, perhaps sales weren't as high as you hoped, but actually you did overhaul the website and you have gained several new customers from different sources which will help build sales in an unexpected way. This is a positive story. Alternatively, you may feel sales went really well but actually, to achieve that, you had to discount heavily, fit in 10 new markets or perhaps never got round to launching that great new service. This story has positives, but actually some serious concerns to address too.
What are the feels? For me, this is crucial. It might be a 'soft' reflection about your levels of tiredness or emotional resilience, but for a micro, this is your version of business culture, team productivity or team moral that would be measured and assessed in bigger organisations. Let's imagine that the above two ways of reflecting have produced great figures and results. How fab. But what if the cost to your health, your confidence or moral has been too high. This would require a course correction, perhaps a new business model or a more efficient ways of working. Alternatively, perhaps the figures have been a little low compared to goals and you notice on proper relfection that your motivation or energy has been low during this time. This also paves the way for new thinking, checking in with the goals or purpose of your business to find ways to re energise the vibes.
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